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Latest L5M10 Exam Practice Questions

The practice questions for L5M10 exam was last updated on 2025-11-16 .

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Question#1

Which of the following is an example of a Just-in-Time (JIT) II inventory system?

A. A manufacturer holds zero inventory

B. A supplier is implanted within a customer organisation and places orders to their own company

C. A two-bin system is used whereby a supplier delivers new stock when one bin is empty

D. A company places orders only when items are required

Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
JIT II integrates suppliers directly within the customer’s premises, allowing them to manage replenishment themselves using the customer’s systems ― enhancing responsiveness and coordination.
(Reference: CIPS L5M10 Study Guide, JIT and JIT II methods, p. 11)

Question#2

Which of the following are benefits of using Service Life-Cycle Management (SLM)? Select TWO.

A. Accurate demand forecasting

B. Cost savings

C. Customer retention

D. Effective planning of resources

Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
SLM manages services across their life cycle ― including after-sales and support ― improving customer retention and resource planning. While beneficial long-term, it may increase costs rather than reduce them.
(Reference: CIPS L5M10 Study Guide, Service Life-Cycle Management, p. 65)

Question#3

The 'Drum, Buffer, Rope' technique helps to solve which issue in manufacturing?

A. Fluctuations in prices

B. Bottlenecks

C. Poor forecasting

D. Redundant inventory

Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Drum-Buffer-Rope (DBR) is a Theory of Constraints scheduling method designed to synchronise flow at the constraint (“drum”), protect downstream operations with a buffer, and control release via the rope. Its primary purpose is to manage and relieve bottlenecks so overall throughput improves. (CIPS L5M10 Study Guide, p. 143)

Question#4

Yolo Inc. is a low-cost manufacturer with tight margins. To remain profitable, logistics must help reduce costs.
Which transportation strategy best supports this aim?

A. Run a competitive tender annually to secure the cheapest logistics provider

B. Manage inbound logistics to strict KPIs to reduce waste and delays

C. Eliminate all activities that do not provide value add

D. Brand all fleet vehicles with company logos

Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Cost-leadership logistics requires efficiency in inbound and outbound flows. Managing inbound logistics using KPIs (e.g., vehicle turnaround time, delivery reliability) reduces time waste and unnecessary costs. Annual tenders or branding efforts do not guarantee cost reduction. (Reference: CIPS L5M10 Study Guide, “Cost as a business strategy,” p. 53)

Question#5

A Transport Management System (TMS) comprises several functions.
Which of the following is NOT one of these?

A. Planning and decision-making

B. Transport execution

C. Fleet maintenance

D. Measurement and reporting

Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Core TMS functions typically include: planning & decision-making (e.g., carrier/route selection), transport execution (e.g., tendering, dispatch), transport follow-up/visibility, and measurement & reporting (KPIs). Fleet maintenance is generally a separate fleet/asset management function, not a standard TMS core function. (Reference: CIPS L5M10 Study Guide, TMS functions, p. 91)

Exam Code: L5M10Q & A: 88 Q&AsUpdated: 2025-11-16

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